Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

It sure surprised me.
When it was announced that "The names of the prospective Directors will be submitted to NASDAQ for their vetting process to ensure that the individuals meet the requirements per NASDAQ definitions" I was skeptical, having never heard of such a pre-qualification process. Apparently that turns out to be just another one of those myriad very real things that I have never heard of.
It seems like it would have been impossible for the example company (Natural Health Trends) to have secured and announced a listing approval from Nasdaq the day after adding two independent directors if those directors hadn't passed some kind of Nasdaq "vetting process" previously.


I'm still very curious as to how this gentleman fits into the picture:
From a 9/2/14 8-K:
"On September 2, 2014 the Board of Directors appointed Dr. Barry Schechter to the Cellceutix Board of Directors, effective October 1st, 2014."
"Dr. Schechter does not have any family relationships with any of our officers or directors, and there is no arrangement or understanding between them and any third party pursuant to which he was selected as director. Dr. Schechter has not had any transactions with us since July 1, 2013 through the present that would require reporting pursuant to Item 404(a) of Regulation S-K."
The above seemed to be an argument for his independence.

Then, from the Cellceutix 10-K filed on 9/15:
"The Company is engaged in preparing the contracts for this appointment and as of the date of this filing Dr Schechter is not yet a member of the Board."

From the Cellceutix website Our Team page as it appears today:
Officers and Board of Directors (biographical info omitted)
Leo Ehrlich, CPA - Chief Executive Officer and CFO, Board of Directors
Krishna Menon, RCM, PhD, VMD - President, Chief Scientific Officer, Board of Directors
James Alexander, MD, MPH, FACP – Chief Operating Officer
Daniel Jorgensen, MD, MPH, MBA, FAAP – Chief Medical Officer

No sign of Dr. Schechter, obviously.

I can't help pointing out that the reasons that a company should have independent directors aren't limited to the fact that their presence allows for a company listing on an exchange. All of the other reasons are, in fact, the basis for the exchanges requiring their presence....an element of corporate governance necessary for the protection of shareholders (institutions know this full well). The reasons to have independent directors are fully present even in the absence of the fact that they allow for an uplisting.